Merritt said McLaughlin was "thumbing his nose" at HUD, and felt his salary was "none of their business."

Merritt described McLaughlin's salary as "completely disproportionate"compared to his peers around the country. Merritt also said if the state or HUD knew McLaughlin's true salary, there would have been an investigation.

McLaughlin did not falsify his tax returns, Merritt said.

Lt. Gov. Tim Murray has been questioned under oath about his ties to McLaughlin.

Investigators are looking into fundraisers McLaughlin held on Murray's behalf.

McLaughlin was released on personal recognizance. He will be sentenced on May 14.

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